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SINKING INTEREST AND REDEMPTION (18)AGENCY PLAN: MISSION, GOALS AND BUDGET SUMMARY

MISSION:The Debt Service Fund meets the principal and interest of the bonded indebtedness of the City of Detroit.

AGENCY FINANCIAL SUMMARY:

2010-11 2009-10 2010-11 Increase

Requested Budget Recommended (Decrease)

Appropriations

General Obligation Bonds:

25,102,446$ Interest 27,307,866$ 25,102,446$ (2,205,420)$

44,705,000 Principal 45,165,000 44,705,000 (460,000)

3,880,000 DDA Tax Increment Dist. 3,880,391 4,017,506 137,115

42,000 GM Tax Increment Dist. 42,714 26,075 (16,639)

- Other Captured Taxes 437,095 547,286 110,191

- Prior Years Deficit - - -

73,729,446$ Total Appropriations 76,833,066$ 74,398,313$ (2,434,753)$

Revenues

65,507,446$ Current Year's Property Tax 65,852,065$ 69,258,627$ 3,406,562$

(1,146,000) Uncollectible Property Tax (1,148,000) (2,047,000)$ (899,000)

Prior Year's:

100,000 Real Property Tax 560,000 - (560,000)

273,000 Personal Property Tax 11,000 - (11,000)

1,970,000 Industrial Facilities Tax 1,749,685 2,301,701 552,016

25,000 Neigh. Enterprise Zone Tax 2,685,004 3,094,863 409,859

- Renaissance Zone Tax 2,157,868 1,690,076 (467,792)

- Other Miscellaneous Taxes 93,398 126,470 33,072

7,000,000 Other Surplus 4,872,046 (26,424) (4,898,470)

73,729,446$ Total Revenues 76,833,066$ 74,398,313$ (2,434,753)$

0 NET TAX COST: 0 0 $ 0

Tax Levy Requirement 68,024,866$ 71,854,446$ 3,829,580$

Delinquency Rate 6.00% 12.00% 6.00%

Tax Rate (per $1,000 valuation) 7.4773$ 8.9157$ 1.4384$

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SINKING INTEREST AND REDEMPTION (18)ACTIVITY DESCRIPTION: BONDS AND INTEREST REDEMPTIONBond and interest redemption provides for the scheduled retirement of principal and interest on long-term City debt.This debt derives from general obligation bond sales. (The debt service on Enterprise Funds appears in theEnterprise Agency Sections.)

State law limits the amount of general obligation debt a city may have outstanding at one time. Generally, the limitrequires such debt to be within ten percent of the assessed value (which includes certain assessed value equivalentsfor purposes of the formula) of all real and personal property in the city. Significant exclusions to or extensions ofthe debt limit are permitted for special assessment bonds, motor vehicle highway bonds, hospital bonds, certainmortgage and housing bonds and various other bonds for projects deemed necessary for abating pollution. TheCitys outstanding debt is currently within the limits prescribed by State law. After the effective date (December 22,1978) of an amendment to the State Constitution, the City may not issue general obligation bonds payable fromtaxes levied for debt service without a vote of the electorate.

The Debt Management Section of the Finance Department (Agency 23) is responsible for managing the generalobligation debt, as well as, that ofother bonding and financing authorities, which include the following:

The City of Detroit Building Authority, established by the City for the purpose of financing and managing theconstruction of various publicly owned buildings, parking lots, recreational facilities and related sites to beleased to the City.

The City of Detroit Downtown Development Authority (DDA), established by the City to help halt propertyvalue deterioration and to promote economic growth in the downtown district.

The Greater Detroit Resource Recovery Authority (GDRRA), a separate governmental unit from the City,created by the cities of Detroit and Highland Park for the purpose of financing, constructing and operating of awaste-to-energy facility located in the City.

The Economic Development Corporation of the City of Detroit, established for the purpose of assistingindustrial and commercial enterprises in various endeavors which would benefit Detroit residents.

The City of Detroit Tax Increment Finance Authority, established for the purpose of preparing developmentand tax increment financing plans in the City and associated with financing of the Central Industrial Park (GM)Project. The debt has been repaid under this Authority and the city no longer captures taxes for this purpose.

The Local Development Finance Authority, established for the purpose of assisting in the financing ofdevelopment projects in the City and associated with the Citys Jefferson/Conner (Chrysler) RedevelopmentProject.

The Detroit-Wayne Joint Building Authority, established by a joint effort of the City and the County for thepurpose of constructing and maintaining buildings that would serve both City and County residents.

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2008-09 2009-10 2010-11 2010-11 VarianceActuals Redbook Dept Final Mayor's

Request Budget Rec

Appropriation Summary - Revenues

Budget Development for FY 2010-2011

CITY OF DETROIT

A18000 - Debt Service

00212 - General Bond Redemption

401100 - Current Year Property 67,322,454 65,852,065 65,507,446 69,258,627 3,406,562

401150 - Uncollectible Property 0 (1,148,000) (1,146,000) (2,047,000) (899,000)

402100 - Prior Years Real Prope 101,208 560,000 100,000 0 (560,000)

402200 - Prior Years Pers Prope 273,408 11,000 273,000 0 (11,000)

407195 - Industrial Facilities Tax 1,970,405 1,749,685 1,970,000 2,301,701 552,016

407200 - Other Miscellaneous T 0 93,398 0 126,470 33,072

407210 - Neigh Enterprise Zone 0 2,685,004 25,000 3,094,863 409,859407215 - Renaissance Zone Tax 0 2,157,868 0 1,690,076 (467,792)

461100 - Earnings On Investme 321,778 0 0 0 0

475130 - Other Surplus 0 4,872,046 7,000,000 (26,424) (4,898,470)

510325 - Transfers From Other 90,631,478 0 0 0 0

00212 - General Bond Redemption 160,620,731 76,833,066 73,729,446 74,398,313 (2,434,753)

10830 - Convention Facility - Debt Service

422190 - State Hotel & Liq Tax- 17,367,715 0 0 0 0

461100 - Earnings On Investme 608,222 0 0 0 0

10830 - Convention Facility - Debt Se 17,975,937 0 0 0 0

A18000 - Debt Service 178,596,668 76,833,066 73,729,446 74,398,313 (2,434,753)

Grand Total 178,596,668 76,833,066 73,729,446 74,398,313 (2,434,753)

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